Closing pop-up stores, pushing the grocery business and focusing on advertising all will help Amazon boost profits, KeyBanc analysts said as they boosted the online retailer’s price target.

The KeyBanc analysts raised their recommended allocation on Amazon to overweight and boosted the price target to $2,100, implying nearly a 25 percent gain from Thursday’s close. Shares rose about 1.1 percent in premarket trading Friday.

The company “is taking a number of operational moves to improve profitability in core retail, which could drive mid-term earnings above the current consensus view. AMZN is pivoting to a company with accelerating profitability.”

Specifically, the analyst team, led by Edward Yruma, pointed to Amazon’s decision to shutter its pop-up kiosks used to sell hardware products. Yruma also cited potential in the mid-market grocery business and Fresh Pickup service.

Finally, Amazon Web Services and advertising could boost margins by $100 billion and lead to significant margin expansion, the analysts said.

Get more stuff like this

in your inbox

By signing up above you will receive the Preferred Alert newsletter and 3rd party advertisements. Expect up to 5 messages per week from us. You can unsubscribe at any time at the bottom of any of our emails.